Thursday, 3 May 2012

BIMB extends gains on target price upgrade by Maybank IB Research

KUALA LUMPUR (May 3): BIMB HOLDINGS BHD [] extended its gains and was among the top gainers in early trade on Thursday after Maybank Investment Bank Bhd on May 2 maintained its Buy rating on the stock and raised its target price to RM2.95 (from RM2.55) and said higher valuations were warranted for both Bank Islam and Syarikat Takaful (STMB), given their strong underlying fundamentals.

At 9.13am, BIMB rose 3 sen to RM2.70 with 270,6000 shares done.

Meanwhile, Takaful rose 5 sen to RM4.25.

“Pegging on higher P/BV valuations for both companies, our SOP valuation for BIMB Holdings is raised to MYR2.95 from MYR2.55, which implies 16% upside to the current share price.

“Our revised target P/BV multiple for STMB (Not Rated) values the takaful operator at MYR4.75, or 20% upside to its current share price,” Maybank IB said in a note Wednesday.